Another downtown hotel?

City pushes $56 million plan

The
City of Springfield is promoting a plan to bring a 95-room hotel to Washington
Street.

“It
is exciting,” said Mayor Jim Langfelder. “They actually had to scale back the
project. They wanted to do a bigger one.”

Plans
include 95 hotel rooms, an indoor swimming pool, 17 apartments, retail space, a
rooftop bar and a bowling alley. “The property will be a landmark project and
anchor attraction to a city that hosts business travelers and families
year-round,” proponents say in a written summary of the project that’s been
given to the city. Hilton and Marriott both have expressed interest, according to
the summary, with both companies eying extended-stay quarters for long-term
guests. Both the Station House bar and a city-owned parking ramp would be
demolished to make room.

The
project isn’t a done deal.

Developers
are asking for $7.2 million in tax increment financing money, plus the city’s
ramp worth $450,000 to create the complex on the 300 block of East Washington
Street. The balance of the money would come from private equity investors, city
officials say. Officials declined to disclose names, other than two investors
live in the Chicago area and another is from Florida.

The
developer of record in city records is a limited liability corporation called DK
Collection SPI, with headquarters in a house in the Irisdale subdivision east
of Interstate 55. Abigail Powell, city TIF coordinator, said the identities of
the investors would be disclosed before the city closes any deal.

Langfelder
said the proposal at present includes several contingencies, including
financing. The city wouldn’t release any property or money until financing is
finalized, he said. The city's Economic Development Commission is scheduled to consider the proposal next week.

The
only upfront outlay for the city would be the parking ramp, said Val Yazell,
city economic development director. The $7.2 million in TIF money would be paid
over time as the property increases in value due to development and the city
forgoes property taxes, she said.

According
to the written summary, the project would create between 400 and 600
construction jobs with between 130 and 150 permanent jobs when the hotel opens.
While the city would forego property taxes due to TIF financing, hotel and
sales taxes would total nearly $300,000 in 2021 and rise to more than $410,000
in 2025, according to the written summary submitted to the city.

“I
definitely think it’s going to happen,” said Ward 5 Ald. Andrew Proctor, whose
ward includes the site. “The city has vetted it pretty thoroughly. I think they
have all their financing in place.”